A recent report from Reuters has suggested that Samsung Pay, Samsung's home-grown contactless payment system, will launch along with the Korean tech giant's next smartwatch towards the fag end of 2015.
Samsung Pay will use NFC technology to enable users to make payments in NFC terminals directly from the new smartwatch. Functionally, there isn't any difference between Apple Pay and Samsung Pay, though success will depend solely on ease of usage as well as how many new smartwatches Samsung will be able to sell.
Back in February, Samsung acquired wireless payment system LoopPay with a view to counter the increasingly propular Apple Pay wireless payment technology. Using add-on devices for smartphones, LoopPay can transmit stored credit card information to magnetic card readers to ensure smooth payments.
Its Magnetic Secure Transmission (MST) system generates a magnetic field that links up with that of the card readers to facilitate the flow of information. LoopPay claims that the MST system works in around 90 per cent of American sale terminals.
As of now, the Apple Watch already supports Apple Pay and is steadily making its presence felt in more and more countries, despite issues with deliveries of select models. The total sales of the Apple Watch has been unprecedented, with Apple selling more watches on the first day of the launch than what the entire smartwatch industry sold in a year.
Armed with the NFC technology, the new Samsung smartwatch will surely be a sturdy rival. However, whether it will be able to match Apple Watch sales is surely a no-brainer.